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The "foreseeable end" of the asset purchase program in December does not mean that "monetary policy ceases to be expansionary," said Mario Draghi, the president of the Central Bank European Parliament (ECB), Monday Economic and Financial Affairs of the European Parliament
Draghi, who addressed the European MEPs in Brussels in the "monetary dialogue" between Parliament and the ECB at the end of this afternoon , said that "monetary policy will continue to accompany economic expansion for some time", including through reinvestment policy "for a time" amortization of its securities portfolio and the future direction of rates of interest from the central bank.
In response to the Spanish PP MEP Gabriel Mato, the ECB President reaffirmed the orientations of the last meeting of the ECB in June in that interest rates remain at current levels at least historically, at least 0% on the key rate – "until at least the summer of next year."
At this hearing, Draghi drew attention to the "global risk factors" derived from the "threat of protectionism". "And the generators of" high global uncertainty ", which requires" Europeans to stay together. "
Draghi's words in the European Parliament come at a time when the risk of a global trade war has intensified since late last week after the United States started collecting 25% of rights on a first batch of 818 lines of products imported from China worth $ 34 billion (29 billion euros). Soon after the entry into force of these taxes on July 6 Beijing authorities announced retaliatory measures against 545 US products exported to China The war between the two largest economies in the world could intensify in the face of the anticipation of a second package by Washington and the instructions given by President Trump to dramatically increase the rate universe. "At its meeting on June 14, the ECB decided to anticipate the announcement of the end of the asset purchase program in December and to reassure the markets on the fact that it would not change the interest rates before the end of next summer. The purchase on the secondary market of public debt since March 2015 of bonds issued by member countries of the euro area represents 80% of the asset acquisition program and has served as a real " rescue "for the peripheral countries of the euro, as Portugal [19659007]
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